Assigning Manufacturing Overhead Cost to Activity Pools Is Referred to as First-Stage

question 129

Multiple Choice

Assigning manufacturing overhead cost to activity pools is referred to as first-stage allocation because costs are assigned first to the activity pools before being assigned to

• A)cost objects.
• B)cost drivers.
• C)activity drivers.
• D)activity objects.

---

Definitions:

More Elastic

Describes a scenario where the quantity demanded or supplied of a good or service is more responsive to changes in its price.

Income Elasticity

A measure used in economics to show how the demand for a good or service changes in response to changes in consumer income.

Elapses

Refers to the passage of time or the process of something coming to an end or expiring.

Inelastic Demand

Describes a situation where the demand for a good or service changes little when its price changes.